Home > Research > Publications & Outputs > Community-level natural resource management ins...

Electronic data

  • Kaivanto(2018)IJC12(1)LotteryAllocationOfFishingSites_final_published

    Rights statement: Creative Commons Attribution 3.0 Unported (CC BY 3.0) permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Copyright is retained by the author(s).

    Final published version, 333 KB, PDF document

    Available under license: CC BY

Text available via DOI:

View graph of relations

Community-level natural resource management institutions: A noncooperative equilibrium example

Research output: Contribution to journalJournal articlepeer-review

<mark>Journal publication date</mark>23/04/2018
<mark>Journal</mark>International Journal of the Commons
Issue number1
Number of pages25
Pages (from-to)548-572
Publication StatusPublished
<mark>Original language</mark>English


The Institutional Analysis and Development (IAD) literature finds that Nash equilibrium predictions are empirically falsified in the social dilemmas that arise in community-level natural resource management problems. However, Nash equilibrium is not the only solution concept within noncooperative game theory. Here we demonstrate the power of Correlated Equilibrium (CE) to explain lotteries for the allocation of fishing sites as enduring community-level natural resource management institutions. Such CE-implementing lotteries are procedurally fair, equitable, and increase total expected fishery value.This modeling approach clarifies two further sets of relationships. It reveals the nature of the interdependence between the size and spacing of fishing sites and (a) the in-use characteristics of fishing gear, as well as (b) the degree of formalization of property rights and the structural features of the natural resource-management institution. When appropriately applied, noncooperative game theory offers a powerful explanatory complement to the IAD literature on community-level natural resource management.